SPX: correction might continue

During the previous week markets witnessed that Nvidia can dip in value. The relaxation period of continued moves to the upside came to the reality check. Combination of the Middle East crisis and mostly expectations that the Fed will not cut interest rates anytime soon, pushed the US equities toward the downside. The S&P 500 slipped below the 5.000 level and was mostly traded with a negative track during the whole previous week. Almost all industries have lost in value. Netflix was down by 9%, while chip stocks also ended the week under pressure. The current question is if investors are slowly waiving out from the AI frenzy?

Regardless of the developments during the previous week, it was inevitable that the market would sometimes enter into short corrections after unprecedented moves toward the upside. A negative market mood could continue for another week, or at least until the forthcoming FOMC meeting, where the Fed`s views on current macro data will be more clearer. At this moment, the majority of investors perceive the first rate cut in September this year, but it is still under a question.